U.S. commercial real estate prices increased 6.7% in September from a year ago, according to the latest RCA CPPI summary report. The “US National All-Property Index” rose 0.7% in September from August, maintaining the monthly pace of growth seen since May. Still, RCA points out there is wide variance in price trends across the property types.
The industrial index posted the largest annual gain across the property types again, up 11.9% YOY. Monthly price increases have slowed, however. Prices rose 0.3% from August, down from the 1.0%+ gains seen earlier this year.
Shifting to the apartment sector, RCA found growth ticked up to an 0.8% monthly pace and quickened to a 7.7% annual rate, arresting the slowdown in price growth seen since early 2018.
RCA reports price growth for both office and retail properties weakened significantly, compared with the rates posted a year earlier. The office index gained 3.1% YOY, compared to a 7.0% clip in September 2018. Retail continues to lag the other property types. Prices rose only 1.4% YOY, down from the 2.8% annual return a year ago.
Dennis Kaiser is Vice President of Content and Public Relations for
Connect Commercial Real Estate. Dennis is a communications
leader with more than 30 years of experience.
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